Refinance student loans

Student loan refinancing See what you could be saving

Refinancing means renegotiating your existing student loan: it can save you thousands of dollars in the long run.

The main reason why people refinance is to take advantage of benefits like only having one loan payment to manage, lower interest rates, and to get out of debt sooner. But not all refinancing options are created equal.


Interested in refinancing student loans?

Here are the top lenders of 2020!

2.05% – 6.49% APR *
*Disclosure from College Ave
Visit College Ave
3.50% – 8.77% APR *
Variable: 2.75% - 10.22%*
*Disclosure from Earnest
Visit Earnest
1.76%-6.45% APR *
*Disclosure from Commonbond
Visit Commonbond
2.09% - 8.57% APR *
*Disclosure from Credible
Visit Credible
1.90% – 8.88% APR *
*Disclosure from LendKey
Visit LendKey

Want more info? Check out our lender comparison table

What do I need to refinance my student loan?

To be able to refinance, you will typically need a minimum of $5,000 in loan debt, as well as a FICO score above 700. A stable income is a critical element.

If your credit rating is not so great, or your income isn’t as stable as a lender might desire, you can still refinance with a co-signer who does have those things.

What are the biggest reasons to refinance my student loan?

Refinancing your student loan means:

  • Saving money.
  • Paying off debt quicker.
  • Having one loan to manage.

What are the biggest reasons NOT to refinance my student loan?

With refinancing paying off your federal and private loans, you could be giving up:

  • Federal loan deferment.
  • Federal loan forbearance.
  • Federal loan income-based repayment plan.
  • Federal student loan forgiveness programs.

It is important to speak with your refinance service provider to understand the exact implications of having your federal loans consolidated with private ones.

How do I know if I’m eligible for refinancing?

CLICK HERE to head over to the LendKey application to get your personalized rate.

You’ll fill out some information about your schooling, your finances, and your current residence.

No need to worry: a soft-credit inquiry won’t impact your credit score, and this two-minute application form will provide you with rate and payment estimates.

Is student loan refinancing right for me?

Whether or not you should refinance your student loans will completely depend on your personal needs and situation. We know you hate that answer. Here are some questions to consider to help you make the right choice: Are you trying to save money on your monthly payment? Are you trying to decrease the amount of loan payments you have? Are you trying to decrease how much you are paying in interest?

If you answered YES to these three questions, it could benefit you to explore your refinancing options. Click here to explore them with LendKey.

Not sure where to start?

Not sure what lenders are looking for in the initial refinancing application?

We've put together a detailed checklist of everything you need!

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Frequently asked questions

What does ‘refinancing your student loans’ mean?

Basically, you can save money on interest that make payments more manageable. All you have to do is consolidate and refinance your student loans. This would allow you to lower your percentage, which can help save money and (hopefully!) become debt-free in a timely manner.

Sounds perfect, doesn’t it?

Even though there are cost-saving benefits, this can be risky for federal student loan borrowers (Forbes).

Consequences of refinancing federal loans:

First of all, the biggest consequence of refinancing federal student loans is that you’re removing your safety net. Federal student loan borrowers are offered many repayment plan options that make paying back loans plausible: Income-Based (IBR), Pay As You Earn (PAYE), and Revised Pay As You Earn (REPAYE), among others. These plans are meant to help you pay off your student loans depending on your situation. For example, their IBR plan sets up a monthly payment plan based on your income. And if you’re a borrower who uses an income-driven plan to pay back federal student loans, you may also qualify for student loan forgiveness. Of course, there are advantages and drawbacks to every program, so you should draft a pros and cons list of each one to determine your best option.

When should you refinance?

This depends on your situation. If you have student loans and want to save money on interest by refinancing, you need to first evaluate your current financial situation. What benefits and protections will you lose by refinancing? Confirm that the pros outweigh the cons before jumping ship. These savings can be worth it for some borrowers, but not all.

If you have private student loans, then student loan refinancing probably makes sense. Private student loans are more likely to have higher interest rates and don’t qualify for student loan forgiveness or federal repayment plans (Forbes).

However, if you’re considering refinancing your federal student loans, then please research what protections you will lose to determine if it’s worth the risk. For borrowers who have a steady job, heavy cash reserves, and can pay off their debt in a short period of time - refinancing may make more sense. As a result, their interest payments would lower so they can pay off their debt faster. CNBC demonstrates what makes student loan refinancing so successful through real stories, but they also make it clear that this can be a major risk for federal student loan borrowers.

What’s the best place to refinance student loans?

The best student loan refinancing option will depend on the borrowers’ specific needs and financial situation. We’ve put together this list of refinancing options to help you find the best place to refinance student loans.

Who offers the best student loan refinance rates?

We recommend that you compare your refinancing options in order to find the best student loan refinance rates. Some of the criterion that will impact your rate are your credit score, prevailing market rates, the school you attended, and your employment situation, among others.

What are the best student loan refinance companies?

To help you navigate the large amount of companies offering student loan refinancing, we’ve created this list of the best student loan refinance companies. We urge you to compare rates, repayment terms, and other variables that can have material impacts on your monthly payments and total cost.

Will you refinance your student loans?

Unfortunately, there’s no set guidelines that indicate who should refinance their student loans and who shouldn’t. That decision falls onto the borrowers themselves. So research is important!

For more information on America’s rising student debt, check out Millennials Are Facing $1 Trillion in Student Loan Debt.

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